This Term Describes a Hierarchy of Positions, Sets of Rules

question 2

Multiple Choice

This term describes a hierarchy of positions, sets of rules, and a clear division of labor in a collective of individuals organized into a group to achieve specific goals.

• A) Organizations
• B) Organizational structure
• C) Division of labor
• D) None of the above

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Definitions:

Capital Balances

Refers to the amount of money that the owners of a company have invested in the business or retained from profits over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Closing the Revenue

The process of finalizing all revenue accounts and transferring their balances to permanent accounts at the end of an accounting period.

Capital Account

An account on the balance sheet representing the cumulative amount of investment in the business by the owners or shareholders, plus retained earnings.